Google earned $65 billions in value in just one day - Insane Visions

Google earned $65 billions in value in just one day

google shares

Google shares ended Friday’s trading session at a quotation of $699.92, registering a 16.3% increase, thus adding 65 billion dollars, in a single day, to the market value of the U.S.-based online giant, according to Reuters.

Apparently, YouTube’s viewership has grown significantly and made investors question Facebook‘s push into video.

During the whole trading day, Google‘s shares peaked at $703, thus evaluating the company at 471.5 billion dollars. Therefore, they consolidated its position as the world’s second most valuable company, after Apple. CFO Ruth Porat also pointed to a decrease of costs due to the reduced advertising rates.

Things went better than expected for Google!

The share evolution took place in a context where the company reported a net profit and revenue above analysts’ expectations in the second quarters. Google reported a net profit increasing of 17.3%, from $3.35 billion to $3.93 billion. Excluding currency fluctuations, the revenue in the second quarter of 2015 rose by 15%.

google

The search engine giant has spend billions of dollars on data centers, real estate, acquisitions, alongside research and development, in order to support their existing business. Not to mention that the target was also to identify new growth opportunities, in areas like energy, healthcare and transport.

Is the growth of the mobile market a concern?

Meanwhile, the growth rate has slowed and some analysts are worried that the company’s core business, search advertising, has issues in adjusting to the smaller screens of smartphones. Also, the constantly growing number of mobile apps puts pressure on advertising rates, so, in these circumstances, Google‘s administrative panel is more focused on reducing costs, after last year’s big growth.

In this year’s second quarter, they reported costs and expenses of $12.9 billion, 10% higher than last year. Expenses rose by 13% in the first quarter, respectively 22% in the fourth quarter of 2014.

 

Andrei

A finance and tech news journalist with a passion for entrepreneurship and business. Feel free to message me on Twitter and Facebook.